Wednesday, April 01, 2009

Dominion Virgina Power Seeks 6.9% Rate Increase

Dominion Virginia Power has submitted a request to a three member regulatory panel of the Virginia State Corporation Commission (SCC) seeking to raise electricity rates 6.9 percent during the next 14 months to pay for equipment, salaries, plant construction and conservation projects. The request comes a year after the state's largest energy provider raised rates by 18 percent to cover fuel costs, the largest one-time rate increase in three decades. Before Dominion won approval for last year's boost, the average home electric bill was $91. If the SCC approves this one, the average monthly bill will hit $116 by May 2010.

Dominion serves nearly 2.4 million homes and businesses statewide, including 800,000 customers in Northern Virginia.Dominion said incremental increases proposed for Sept. 1 and Jan. 1 will pay for operating costs, power plants in Buckingham and Wise counties and conservation programs. The increase also includes a 13.5 percent profit for the company and its investors.

Baltimore Gas and Electric raised rates 72 percent in 2006. The average bill for Pepco customers in Montgomery and Prince George's counties increased 86 percent between June 2005 and June 2008, officials with the utility said. The increase was 65 percent for customers in the District. Maryland's average Pepco bill was $168 in January. Pepco is expected to seek a rate increase in the District later this month, but has no current plans to file for a rate increase in Maryland. (WashPost, 4/1/09)

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